Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The firm ABC is going to IPO. The firm has the following financials (in euro). Revenues(Sales) 18000 EBITDA | 8000| Net Income Book value of

image text in transcribed
image text in transcribed
The firm ABC is going to IPO. The firm has the following financials (in euro). Revenues(Sales) 18000 EBITDA | 8000| Net Income Book value of equity 10000 4000 3000 Debt Cash Using the sector median ratios (given below), estimate the market value of the firm (IPO value) Sector medians: PE PBV EVIEBITDA 4 18 EV/Sales EV/Invested Capital 1.2. Estimate MV of the firm ABC using PBV ratio? 1.3. Estimate MV of the firm ABC using EV/EBITDA ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Legal Environment Today Summarized Case Edition

Authors: Roger LeRoy Miller

8th Edition

130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768

More Books

Students also viewed these Finance questions

Question

Solve the given equation. 2 log 3 2 log 3 (x + 1) = log 3 5

Answered: 1 week ago